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Starbucks is altering its pay structure for salaried US employees, moving from manager-led discretionary increases to a flat 2% raise for all non-hourly workers, including corporate staff and salaried store managers.
The change, first reported by Bloomberg, applies for the fiscal year ending in September.
The uniform raise is tied to broader cost management as the company pushes through operational changes ranging from new technology tools to store renovations.
“[Customers] can see and feel the differences these investments are making,” a Starbucks spokesperson said. “As we make these significant investments, we need to carefully manage all our other costs.”
Cost control and pay adjustments
The shift is the latest in a series of workforce-related moves. In February, Starbucks announced plans to cut 1,100 corporate jobs and increase back-to-office requirements to three days a week for executives at the vice president level and above.
WFH to go | Starbucks orders return to office four days a week
Last month, CEO Brian Niccol said the mandate will rise again to four days a week this October for corporate workers under the Back to Starbucks transformation plan. He also outlined an exit payout for those unable or unwilling to comply.
Senior leaders at the vice president level and above, along with support center leaders, will need to relocate to the Seattle or Toronto area. Future hires and internal transfers must also be based in one of the two hubs.
Union pressure builds
At store level, Starbucks introduced new uniform rules this past May, requiring baristas to wear black tops and khaki, black, or denim bottoms under a “green apron-first” policy. Workers United responded by filing a complaint with the National Labor Relations Board, alleging the company enforced the dress code without collective bargaining.
Starbucks is also in negotiations with unionized baristas. In April, the union rejected the company’s proposal of at least a 2% raise for baristas.
